All Forum Posts by: Neil Gulden

Patrick Wheeler , I purchased it in August 2015. Got it for $630K. It's a 3,4,4 and at the time of purchase, gross rent was only $4,300. I've since got new tenants with gross rent now being $6,500. After all expenses including mortgage, insurance, water, property management, cap ex, turn over, everything, I'm making $2,000/month which is 15-16% cash on cash return. Overall I'm happy with the purchase.

Ricky Beliveau , you noted that you're purchase price was $650K with 25% down and also said your monthly interest payment was $1,600. What rate did you get? I ask because I'm doing a job now, $660K purchase, 25% down, 5% rate, monthly interest is $2,048. Just wondering what your rate is so maybe I can use your lender next time as it sounds like an incredible deal. Let me know. Also, project looks awesome!

David Cahill absolutely, please add me to your email list. Thanks for offering and I looking forward to networking more with you.

BP, I am a part time real estate investor with my full time job being in medical device sales. My full time job is what allows me to afford investing, but my end game is buy and hold multi families to provide myself passive income "get out of the rat race." Passive income is the main reason I got in to this game. My experience so far: I bought my first investment property in 2008, a two family in Medford, MA, which I lived in and rented out the other side. Since then, I've purchased a condo in South Boston, a 3 family in Dorchester, MA, and my most exciting purchase to date, a single family home on a large lot that I plan to develop into two town homes. I'm going through the zoning process as we speak. I've been listening to the podcasts almost daily for a little over a year and have been educating myself on REI much more than I ever have before. You could say that I've become obsessed. However, I haven't done the best job at reading the forums or really diving into the web site. This has all recently changed in the last couple months and I wish I began sooner because I've learned a ton. My goal here is to network with other investors and wholesalers, learn more about new construction and flipping, learn from success stories and/or failures, hear about what other people are doing to find deals in expensive markets like mine (Boston), and hopefully I can help others out as well. Looking forward to connecting with more investors who share the same goals and investing interests as me. -Neil

BP, I am a part time real estate investor with my full time job being in medical device sales. My full time job is what allows me to afford investing, but my end game is buy and hold multi families to provide myself passive income "get out of the rat race." Passive income is the main reason I got in to this game. My experience so far: I bought my first investment property in 2008, a two family in Medford, MA, which I lived in and rented out the other side. Since then, I've purchased a condo in South Boston, a 3 family in Dorchester, MA, and my most exciting purchase to date, a single family home on a large lot that I plan to develop into two town homes. I'm going through the zoning process as we speak. I've been listening to the podcasts almost daily for a little over a year and have been educating myself on REI much more than I ever have before. You could say that I've become obsessed. However, I haven't done the best job at reading the forums or really diving into the web site. This has all recently changed in the last couple months and I wish I began sooner because I've learned a ton. My goal here is to network with other investors and wholesalers, learn from success stories and/or failures, hear about what other people are doing to find deals in expensive markets like mine (Boston), and hopefully I can help others out as well. Looking forward to connecting with more investors who share the same goals and investing interests as me. -Neil

Reed, everything you stated is accurate. But, I don't know many people in Boston who are using the 50% or 2% rules. For example, if you buy a multi family property in let's say Dorchester for $600K (this is not a bad price for a move in ready multi) and let's say it's a 4,4,4. The rent per unit would be around $2,400, total rent would be $7,200 meanwhile 2% of $600K is $12,000 per month, which is impossible. However, at $600K down and with a 20% down payment, you're easily making 15%+ on your cash on cash return and this is obviously after subtracting expenses. To me, 15%+ is an excellent return, especially in the Boston area, and an area we know will likely appreciate (this is cherry on top, I invest for cash flow).

Sorry I confused things earlier. Thank you for your response though because I think others who are reading are likely learning something.

-Neil

I disagree with most of these posts. Is Boston incredibly expensive? Yes. But, saying it's impossible to find a deal that won't cash flow until the mortgage is paid off is far fetched. I closed on a property in Dorchester in August 2015. It cash flows very well. 

If you really want to get serious about real estate investing, start doing your own direct mail and cold calling to home owners. It'll take longer to find a house than using a real estate agent, but when you find one, it'll likely be a deal under market value. 

-Neil

All, Let's say I have a list of 75 properties that I just mailed out direct mail to. My plan is to just stick with these 75 and continue to mail to them once a month or every other month. In your experience, how many mailers until I get someone to call me? -Neil

@Account Closed I'm interested in seeing how people respond to your last post. I'm in Southie and bought a condo a few years ago, which has significantly increased in value. Personally, I wouldn't buy anything in Southie at this point unless I somehow landed a deal, which as you said above, would likely not happen. I also recently closed on a 3 family in Dorchester and while I'm cash flowing over 15%, I still feel like I over paid. The Boston market is just so incredibly hot, I don't see how investors will get a deal, unless you're able to find distressed sellers, but even then it may be tough with the amount of cash people are bringing to the table now.

-Neil

I'm not sure what budgets people on this thread are working with, but I recently closed on a 3 family rental in Dorchester, MA $630K, 25% down, and after expenses, mortgage, all in, I'm cash flowing about 20%. The rents are very high and although the purchase is on the higher end, the ROI is incredible. Hope this helps.